Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

How Is The Premium Of A Health Insurance Plan Affected?

Published On Aug 23, 2022

In India today, especially in metropolitan areas, health insurance is beginning to become quite important. This is partly a result of the recent COVID-19 outbreak and the rising expense of medical care. While it can provide a safety net financially in the event of unanticipated medical problems, it's crucial to take into account the premium cost.

Your health insurance premiums will be determined depending on a variety of variables and situations. Knowing the variables that will affect the cost of your premiums will help you make the most of your coverage because knowledge truly is power.

How Is The Premium Of A Health Insurance Plan Affected?

What Is A Premium For Health Insurance?

The charge that an insured must pay to take advantage of certain policy benefits is known as the health insurance premium. This is the sum of money that must be paid regularly to an insurance provider to receive certain benefits. These advantages include, among other things promised, medical coverage. The premium is paid in addition to receiving medical benefits to keep the coverage operational. 

Factors That Will Affect Your Health Insurance Premium

Each insurance company has its own set of rules that it bases its premium pricing on. Here is a list of factors they take into account when calculating the cost of medical insurance:

  • The Insured's Age

Your age is a key element in setting health insurance prices. This is due to the increased risk of mortality, hospitalisation, and medical costs that come with advancing age.

As a result, a 25-year-old would pay a substantially cheaper premium of about Rs. 2,414 per year, compared to a 50-year-old who could be required to pay a premium of Rs. 6,208 per year.

Additionally, some insurance providers set an upper age limit of 65 to 80 years for those purchasing new health insurance policies because it becomes harder to predict risk factors and medical costs as people age.

  • Pre-existing Medical Conditions

To verify there are no pre-existing medical issues, the policyholder or applicant must produce their medical documents. However, if you do have any pre-existing conditions, the insurance provider may elect to include them in your policies or may even decide not to pay for them. If the insurance provider is unable to do so, the policyholder will be responsible for paying the costs. therefore rising and having an impact on the premium.

  • BMI (Body Mass Index)

People with high BMIs pay a premium that is noticeably more than those with normal BMIs. Again, this is because it can result in several diseases, including diabetes, joint problems, and problems with the heart, to mention a few. Higher BMI individuals may even require specialized care for routine operations like pregnancy. Thus, even straightforward processes become a little laborious, which has an impact on premium rates.

  • The Sort Of Plan You Select

Depending on the type of health insurance coverage you select, premium payments change. In comparison to individual coverage, the premium for group health insurance is lower. Additionally, if you have added-on coverings, your premium will go up. The family floater has a high premium rate while individual or group insurance has a low premium rate. Again, each company has its policy terms.


Although paying for health insurance can be expensive, it is still wise to have coverage. Otherwise, you run the danger of having to make large out-of-pocket medical expenses on your own.

Consider setting up automatic payments from your bank account if you enroll in a private plan. By staying current on your premium payments, you'll avoid incurring unneeded medical expenses that can be challenging or impossible to pay back.

Also read: How To Check New India Health Insurance Policy Status?

Is Magma HDI Health Insurance Good?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Health Insurance Coverage Calculator

Who do you want to insured ?

  • Individual
  • Couple
  • Family
  • Parents

Age of eldest insured member ?

Where do you live ?

Disclaimer : Actual Coverage might vary basis your location, age and number of members
Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 50 Lacs+ happy customers